Company Number: 12505622

Analysis Date: 2025-07-19 12:33 UTC

1. Risk Rating: LOW
   The company's financial position has improved significantly in the last year, showing positive net current assets and net assets. It meets micro-entity filing requirements and remains compliant with filing deadlines, indicating operational stability and regulatory adherence.

2. Key Concerns:

• Prior years (2022 and 2023) showed negative net current assets and minimal net assets, suggesting past liquidity issues that could indicate financial instability in earlier periods.
• The company is a micro-entity with only one employee (director), which may limit operational resilience and scalability.
• Limited disclosure of income, profit, or cash flows restricts full assessment of ongoing cash generation and profitability.

3. Positive Indicators:

• Sharp turnaround in net current assets from negative £8,533 in 2023 to positive £11,083 in 2024 indicates improved liquidity and working capital management.
• Net assets increased from £112 to £20,333 year-on-year, reflecting strengthened balance sheet and potential retained earnings or capital injection.
• No overdue filings for accounts or confirmation statements, demonstrating good compliance with regulatory requirements.
• The director appears stable with no evidence of disqualifications or adverse records.

4. Due Diligence Notes:

• Review detailed profit and loss statements and cash flow reports for recent years to confirm sustainability of improved liquidity and profitability.
• Investigate the source of the balance sheet improvement between 2023 and 2024—whether through capital injection, operational profit, or other means.
• Confirm the absence of contingent liabilities or off-balance-sheet obligations that could impact solvency.
• Assess the business model and revenue streams given the micro-entity status and single director/employee structure for operational sustainability.
• Verify that no director disqualifications or related party transactions exist beyond publicly available data.